Karnataka govt, NASSCOM to set up new 'NextGen' startup warehouse

The Karnataka government in partnership with IT industry body National Association of Software and Services Companies (NASSCOM) is setting up a 50,000 square feet startup warehouse called 'NextGen'. The warehouse will offer technology entrepreneurs a hub to work on innovative ideas. They will also be funded and mentored by venture capitalists.

Applications for the new facility will start immediately and the facility is expected to become fully operational and ready for occupation by the end of 2014. While the Karnataka government and NASSCOM won't take up any stake in the startups, there is a fee that the startups will need to pay.

The Karnataka government and NASSCOM already have a functional 10,000 sq feet warehouse in Bangalore, which they claim has resulted in 28 startups creating more than 100 jobs and bringing in $1 million of investment. Six of these companies are serving the global market. Under the program, over 50 startup events have been conducted with 2,000 participants. The program also runs an online mentorship impacting over 200 companies in Bangalore and over 500 across the country.

The startups are being charged Rs 3,500 per month for six months in this warehouse, and the fee structure for the new warehouse would also be similar.

Also set up in Bangalore, the new warehouse will provide startups a working space for six months incubation terms; a well equipped community events space for meetings & workshops; an Internet of Things (IoT) lab & mobile development lab; and hoteling office space for visiting corporate executives. NASSCOM claims that the warehouse will be one of the largest multi-disciplinary technology incubation facilities in Asia and the largest across the top five metros in the country.

"Startups have been a growth engine for the industry and the economy for quite some time now. NASSCOM has always focused on three core pillars- evangelising entrepreneurship by addressing identified challenges & promoting entrepreneurship as a preferred career option; building capacity by educating aspiring & early stage entrepreneurs on various aspects; and enhancing early stage support for startups," said R Chandrasekaran, chairman, NASSCOM and executive vice chairman, Cognizant India.

"This collaboration with Karnataka government is a great leap in this regard and will provide the requisite support to startups & entrepreneurs at the right time in the right shape and form," he added.

The Karnataka government will provide the facilities while NASSCOM will contribute to the full-time program management, besides constituting an advisory board for managing and governing the entire facility and activities at the center. The industry partners will help mentor and nurture the startup teams at the warehouse, execute skill development workshops, assign executives in residence, as well as provide specialised skills in the areas of product management, mobile and design.

Once fully finished and occupied, the facility will have capacity to house over hundred startups comprising between 1-12 employees each on a round the clock basis.

According to NASSCOM, Bangalore has emerged as the second largest technology hub on the planet after Silicon Valley. The main attraction of the city is its rich and diverse talent pool, ideal eco-system consisting of 400 plus R&D and innovation centers and pro-active government support for the industry.